Key trends to watch
Todd Ebert
In 2017, the healthcare sector and supply chain experienced a period both of great challenge and transformation. Congressional debate surrounding the Affordable Care Act generated uncertainty among patients, providers and payers alike, and ultimately resulted in repeal of the individual mandate. The FDA Reauthorization Act of 2017 increased competition in the generic drug market, helping to preserve patient and provider access to critical treatments. Policymakers pursued solutions to the rapidly escalating opioid crisis. A wave of emergencies and natural disasters tested the supply chain. And prescription drug price spikes and drug shortages continued to threaten patient care.
The Healthcare Supply Chain Association (HSCA) represents leading healthcare group purchasing organizations (GPOs), the sourcing and purchasing partners to virtually all of America’s 7,000+ hospitals, as well as the vast majority of the 68,000+ long term care facilities, surgery centers, clinics, and other healthcare providers. Given our unique line of sight over the entire healthcare supply chain and our experience working on the front lines of the healthcare industry, HSCA has an intimate understanding of the challenges the healthcare industry will continue to face as it enters the 2018.
Here are a few of the trends we are seeing as well as areas of focus and policy priorities that HSCA will continue to pursue in the coming year:
- Drug pricing and generic drug competition. Significant price spikes for critical generic drugs and ongoing prescription drug shortages continue to jeopardize patient access to care. Patients have long relied on generic drugs to reduce costs and increase access to essential medications, and price spikes for commonly used drugs create hardship for patients and providers alike.
- In 2017, HSCA advocated for – and policymakers enacted – priority review of abbreviated new drug applications (ANDAs) for drugs with three or fewer approved alternatives. In 2018, HSCA will continue to work with policymakers and supply chain stakeholders to increase competition in the generic drug market and find solutions to generic drug price spikes and ongoing prescription drug shortages. Our efforts will include policy recommendations for closing the FDA’s Risk Evaluation Mitigation Strategies (REMS) loophole, which currently allows some brand-name drug manufacturers to prevent generic competitors from entering the market. HSCA will also continue to advocate for policies and FDA guidance that support the safe and swift uptake of biosimilar medications.
- Cybersecurity. Advances in technology have led to unprecedented developments in the healthcare sphere; medical device and service technology are improving patient care and creating efficiencies in the healthcare system. However, medical devices and services, like any computer system, are vulnerable to cybersecurity threats that could jeopardize patient health, safety and privacy. With the recent wave of cyberattacks in various industries, cybersecurity will continue to be a focus and priority in the year ahead. In 2018, HSCA will work with healthcare stakeholders to develop best practices and key considerations for cybersecurity, enabling the healthcare industry to continue to protect patient privacy while improving patient care. Drug utilization. In recent years there have been numerous high-profile reports of inadequate supplies of generic drugs that have served as the standard of care for some diseases. HSCA members have a portfolio of solutions to help clients manage price changes and tackle drug utilization – issues closely connected to drug shortages – and will continue to be industry leaders in helping healthcare providers mitigate the impact of shortages in the coming year.
- Global data standards. A common set of electronic data standards is critical in encouraging efficient operations for manufacturers as well as enabling providers to safely and accurately perform their duties. Through our Committee for Healthcare eStandards (CHeS), HSCA will continue to advocate for policies that accelerate the adoption, implementation, and active usage of industry-wide data standards for improving efficiencies throughout the supply chain.
- Emergency preparedness. In 2017, the country experienced a wave of natural disasters and other emergencies that put stress on hospitals and healthcare providers as they served affected communities. GPOs were on the front lines of those emergencies, providing support to healthcare providers and working with manufacturers to identify and locate supplies of much-needed resources. As we enter 2018, HSCA will work with lawmakers and healthcare supply chain stakeholders to provide key insights into improving emergency preparedness and offer strategic policy recommendations that will enable the healthcare industry to continue to provide top-quality care to patients in every situation.
As we head into 2018, HSCA and its members remain committed to helping hospitals and healthcare providers deliver the most effective and affordable care possible to the patients they serve.
Todd Ebert, R.Ph., is president and CEO of the Healthcare Supply Chain Association.